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Measuring Vixtel Technologies Holdings Limited’s (SEHK:8342) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess 8342’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. View our latest analysis for Vixtel Technologies Holdings
How Well Did 8342 Perform?
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This technique allows me to examine different stocks on a similar basis, using the latest information. For Vixtel Technologies Holdings, its most recent trailing-twelve-month earnings is CN¥22.18M, which, against last year’s level, has climbed up by more than double. Since these values are fairly short-term, I have computed an annualized five-year value for Vixtel Technologies Holdings’s earnings, which stands at CN¥14.78M This means that, on average, Vixtel Technologies Holdings has been able to increasingly improve its net income over the last few years as well.
What’s the driver of this growth? Well, let’s take a look at whether it is only owing to an industry uplift, or if Vixtel Technologies Holdings has experienced some company-specific growth. The rise in earnings seems to be supported by a solid top-line increase outstripping its growth rate of costs. Though this resulted in a margin contraction, it has made Vixtel Technologies Holdings more profitable. Inspecting growth from a sector-level, the HK it industry has been growing, albeit, at a subdued single-digit rate of 9.91% in the prior twelve months, and 5.54% over the past five. This shows that any uplift the industry is benefiting from, Vixtel Technologies Holdings is able to leverage this to its advantage.
What does this mean?
Vixtel Technologies Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Vixtel Technologies Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Vixtel Technologies Holdings to get a better picture of the stock by looking at: